Carbon Disclosure Project: Reducing Risk and Driving Business Value

This latest Carbon Disclosure Project supply chain report shows growing corporate awareness of the business risks of climate change and increasing corporate action to address it. In a survey of large companies and their suppliers, a third of respondents said they are already feeling the impact of drought and precipitation extremes on their business. Altogether, 70 percent identify a “current or future risk related to climate change with a potential to significantly affect business or revenue.” The survey reveals a gap in sustainability performance between the large companies that are members of the CDP Supply Chain program and their suppliers, however: 92 percent of members report having a target for emissions reductions compared with only 38 percent of suppliers. And while nearly 70 percent of CDP Supply Chain members report making investments in emissions reductions in 2012, up from just 39 in 2011, only about a quarter of suppliers say they’ve invested in emissions reductions. The report stresses the importance of supplier engagement, good performance data and sound processes and policies for eliciting better performance from suppliers over time.